Consumer finance isn’t just evolving - it’s moving at full speed. Digital banking, AI-powered tools, and economic shifts are changing the way people manage money every day. For banks, fintechs, and marketers, staying relevant isn’t just about playing catch up. The real game changer is knowing where consumers are headed next. Whether it’s doubling down on digital-first solutions or strengthening trust in traditional banking, the brands that adapt fastest are the ones that win - building lasting loyalty and real growth along the way.
So, what’s shaping the next wave of consumer finance? Let’s take a look.
Consumer finance is full of contradictions right now. Optimism is growing, but there’s so much more going on beneath the surface. Despite all the moving pieces, one thing is clear: consumers are more intentional than ever about their financial choices.
Here’s what’s shaping consumer finance this year.
Financial optimism is creeping back in, but consumers aren’t throwing caution to the wind just yet.
Nearly three in five believe their finances will improve in the next six months, a 4% jump since 2022. But even with this boost in confidence, 79% of consumers say they prefer to be cautious with their spending. Gen X are leading the charge here, with 82% saying they’re playing it safe.
And when money’s tight, familiarity rules. 52% of consumers prefer to buy from brands they know, reinforcing the trend toward risk-averse spending. On top of this, more people are saving up for big purchases instead of impulse-buying, with a 7% rise in this behavior since 2022.
But not everyone’s playing it safe. Male consumers are 8% more likely than female consumers to spend when they feel like it, proving that financial caution isn’t universal. And for some, impulse buying is still alive and well. Carefree spenders are 95% more likely to use Klarna, showing that flexible payment options do make a difference. But we’ll get to BNPL (buy now, pay later) services soon.
Consumers are mostly sticking with their financial providers, but how confident are they really? Millennials are the least assured, with only 27% saying they feel “very confident” in their current provider. Gen Z and Gen X aren’t far ahead at 30% each, while baby boomers (41%) show significantly more trust. As generations shift, so do attitudes toward financial security which raises the question: is confidence in banking fading with time?
It’s hit and miss when it comes to confidence in personal finances, too. A third of consumers worldwide say they’re good at managing money, but in Europe and Latin America, that number has dropped by 10% since 2020. Future financial security is still a big deal - 57% say it’s a top priority for them - but the actions people take to achieve this security varies. Gen Z? They’re asking questions, being 21% more likely to seek financial advice. And for high-income consumers, that number jumps to 41%.
Digital banking isn’t the future - it’s here and it’s booming, with younger generations leading the way. Over half of Gen Z (52%) and nearly half of millennials (48%) use digital banks, with Gen Z being 26% more likely than the average consumer to have a digital account. In the UK, their usage has soared by 60% since 2021. Even Gen X (35%) and boomers (23%) are joining in, though at a slower pace.
But traditional banks aren’t out of the picture just yet. A massive 97% of baby boomers, 91% of Gen X, and 86% of millennials still keep a conventional account. Even among digital bank users, 70% also hold a traditional account, and 32% of conventional bank users have a digital bank account. It’s rarely a case of one or the other.
How people use their accounts is evolving, too. Digital banks are the go-to for paying bills, while traditional accounts remain the top choice for savings. And those who go fully digital? They also stand out in other ways. They’re 24% more likely than the average consumer to prioritize success, 60% more likely to buy study programs/learning materials, and nearly 40% want AI-powered financial tools to support fraud detection and security. Their spending habits also set them apart - 74% are more likely to wait for sales, and 67% prefer to go cashless.
Loyalty isn’t what it used to be - at least, not for everyone. Among US Gen Z, 50% are likely to switch banks, rising to 71% among the silent generation. And when they do make a move, it’s not just about finding a new bank - they’re making bigger financial decisions. US bank abandoners are 31% more likely to engage in selling options, showing more of a strategic approach to their money.
For those considering a switch, financial security is a top priority. In the US, 62% say it’s extremely important, and 64% prioritize reliability in their financial provider. As younger generations become more financially active, banks need to work harder to earn and keep their trust.
BNPL (buy now, pay later) isn’t just a trend - it’s totally transforming how people pay, especially millennials, who are 20% more likely to use these services than the average consumer. But it’s not just budget-conscious shoppers driving the shift. Surprisingly, 17% of high-income consumers use BNPL to finance device purchases, showing that flexible payments appeal across all income levels.
But credit cards aren’t going anywhere just yet. Since 2023, there’s been a 3% rise in credit card users, showing that traditional lending still has a grip. The key difference? BNPL users are 31% more likely to spend based on what they feel like, compared to just 5% of credit card users - suggesting that flexible financing encourages a more impulsive approach to shopping.
AI has huge potential for finance, especially when it comes to security and money management. A third of consumers (33%) are interested in seeing AI tools used for fraud detection, showing that security is a major priority. At the same time, 24% of single Gen Z consumers want AI-driven spending analysis, proving that tech-savvy consumers are looking for smarter ways to manage their money.
But when it comes to choosing a financial provider, one thing still trumps innovation - fees and charges remain the number one factor for 56% of AI-interested consumers. No matter how smart the tech gets, cost still matters most.
Consumer finance in 2025 is a balancing act between cautious optimism, digital evolution, and shifting loyalty. People are keeping a close eye on their finances but are also embracing new tools, from digital banking and BNPL, to AI-driven solutions.
For financial brands, the message is clear: understand these behaviors, adapt fast, and build trust. In a world where stability and convenience are everything, the winners will be those who meet consumers where they are and where they’re headed next.